JetBlue Terminates Northeast Alliance Agreement

Despite its best efforts, JetBlue Airways has terminated its Northeast Alliance Agreement with American Airlines.



July 5, 2023

DALLAS — Despite its best efforts, JetBlue Airways (B6) has terminated its Northeast Alliance Agreement with American Airlines (AA), along with its Codeshare Agreement, the Mutual Growth Incentive Agreement, the TrueBlue Participating Carrier Agreement, and the Bilateral Special Prorate Agreement.

These agreements were terminated effective as of July 29, 2023, and delivering the notice to AA on June 29, 2023, following a U.S. District Court decision on May 19, 2023, which enjoined the Carriers from continuing the alliance.

The material terms of these agreements were filed with the U.S. Securities and Exchange Commission in a Current Report on Form 8-K on July 17, 2020, and copies of the agreements were also filed in a Quarterly Report on Form 10-Q on November 9, 2020.

JetBlue states in its press release that it has successfully disrupted the aviation industry for over two decades with its unique business model. The airline also says that it entered the NEA agreement to overcome the constraints that hampered its growth in New York and Boston, proving to be a creative solution that benefited customers.

The airline underlined that under the alliance, it had increased its capacity, introduced new routes and destinations with lower fares, provided B6-AA flight connections as an alternative to Delta Air Lines (DL) and United Airlines (UA), and expanded the benefits of its loyalty program to customers.

The above are the reasons B6 strongly disagrees with the court’s ruling against the NEA and stands "behind the pro-competitive impact of the alliance." It adds that DOJ’s proposal was "too onerous and overreaching."

By all measures, it succeeded. As a direct result of the NEA, customers benefitted from more of JetBlue’s low-fare, high-quality service than ever.

JetBlue Airways

JetBlue says that it looks forward to advancing its planned combination with Spirit (NK).

What are your thoughts on the court's decision and on B6's decision to terminate the NEA? Be sure to leave your comments on our social media channels.

Featured image: American Airlines and JetBlue aircraft sit behind a United Airlines plane at Boston Logan International Airport (BOS). Photo: Darryl Sarno/Airways